Citigroup Inc. announced today that Sallie Krawcheck, Citigroup’s CFO and head of strategy, has been promoted to chairman and CEO of the company’s Global Wealth Management division, comprising the Citigroup Private Bank, Smith Barney and Citigroup Investment Research.

The appointment is effective upon the identification and arrival of her successor in her current role. The company has commenced a formal search of internal and external candidates for this position. In the interim, Robert Druskin, chief operating officer of Citigroup, will oversee Global Wealth Management.

In her new role, Krawchek will replace Todd Thomson, who is leaving the company to pursue other interests, effective immediately.

“Sallie has done a terrific job as our chief financial officer over the past two years, putting a capital allocation process in place, enhancing balance sheet management, and helping me redirect the company’s strategy,” said Charles Prince, Citigroup chairman and CEO. “She distinguished herself as an operating manager at Smith Barney, leading that business forward at a critical time in our company’s history by accelerating its transition to a full-wealth management model and reestablishing excellence in our research operation, while maintaining industry-leading margins.”

“Sallie takes leadership of our Global Wealth Management division at a time when one of our most important strategic priorities is to grow this business and have it work more closely with our other businesses to enhance our products, service and convenience to our clients. The broad view of our organization that Sallie gained as chief financial officer, and her extensive knowledge of Smith Barney, will help assure our success in that effort, and in driving even stronger performance from what is already one of the world’s leading wealth management businesses,” concluded Prince.

“I’m looking forward to returning to an operating role at Citigroup,” said Krawcheck. “Great opportunities exist for our Global Wealth Management business, particularly as economic growth drives a continued expansion of wealth around the globe. As we leverage resources across our businesses, we can further enhance our client service and deliver superior growth.”

Krawcheck, 42, joined Citigroup in October 2002 as chairman and CEO of Smith Barney, overseeing one of the leading private wealth management organizations in the United States. In her two years with the business, she successfully restructured Smith Barney’s Equity Research business to operate independently, while strengthening the quality and transparency of its research. As CFO and head of strategy since 2004, Krawcheck has been responsible for Financial Reporting, Treasury, Tax, Investor Relations, Mergers and Acquisitions, and Strategic Planning for Citigroup. She is a member of the Citigroup Management, Operating, and Business Heads Committees and the Citigroup Foundation Board.

Prior to joining Citigroup, Krawcheck was chairman and CEO of Sanford C. Bernstein & Company, where she became one of the most influential voices for research quality and integrity. She also served as an executive vp of Bernstein’s parent company, Alliance Capital Management, from 1999 to 2001. Prior to that post, Krawcheck was Bernstein’s director ofrResearch. From 1994 to 1999 she was a senior equity research analyst responsible for the coverage of life insurance and securities brokerage companies. For each year Krawcheck covered the securities brokerage sector, she was ranked the number-one analyst in Institutional Investor magazine’s annual poll.

Previously, Krawcheck had worked at Donaldson, Lufkin & Jenrette and, before that, as a financial analyst at Salomon Brothers.